EU to offer May hope of post-Brexit talks at summit: draft text

BRUSSELS (Reuters) - European Union leaders are ready to hand Theresa May an olive branch in deadlocked Brexit negotiations next week by launching their own internal preparations for a transition to a new relationship with Britain.

A draft statement prepared for next Friday's talks and sent out for approval on Thursday to the 27 other EU governments made final Brussels' rejection of opening free trade talks now, but gave the beleaguered British prime minister hope that they would do so in December -- and that, if she ups her offers on divorce terms, the EU will be ready to start talking almost right away.

With nerves fraying and threats flying about walking out without a deal come the March 2019 deadline for departure, the pound took a knock when EU negotiator Michel Barnier said a new round of talks this week had ended in continued deadlock over a British refusal to clarify how much it will pay on leaving.

But it rallied on word that, despite tough demands from EU governments on what they want from London, the Union is ready to talk about how to avoid a "hard Brexit" and to ease Britain out with less disruption -- probably by agreeing to keep it in the single market for a couple of years, diplomats say.

The draft of conclusions which would be issued by leaders of the 27 next Friday, a day after meeting May in a full EU summit, still have to be agreed. Envoys, including from heavyweights Germany and France, objected last week to a suggestion from Barnier that the EU should start working on transition plans.

But EU officials noted that summit chair Donald Tusk has spoken to almost all 27 leaders in recent days -- he briefed May by telephone on his preparations on Thursday. Envoys and ministers from the 27 will discuss the draft in the coming days.

A senior EU official closely involved in the negotiations said Brussels did not expect major changes to the summit text.

"INTERNAL PREPARATORY DISCUSSIONS"

The first version, seen by Reuters, confirms what Barnier and others have said this month: that there is not "sufficient progress" on agreeing three key elements of a withdrawal treaty for leaders to agree now to open the trade talks May wants.

But in an effort to defuse accusations in Britain about EU intransigence, the leaders would welcome progress to date on their three key issues: the rights of 3 million EU citizens in Britain; protecting peace in Northern Ireland from the effect of a new border on the island; and Britain's outstanding payments.

They would pledge to reassess things at their next summit in mid-December -- Barnier on Thursday spoke of making progress in the next two months. And in order not to waste time once they do decide to launch talks on a post-Brexit future, they would ask Barnier and their envoys to start preparing now for a transition -- albeit without actually starting talking to Britain about it.

"The European Council invites the Council (Article 50) together with the Union negotiator to start internal preparatory discussions," the draft read. Another EU official said that would avoid weeks of delay in launching a new phase by the new year -- which business leaders say is vital if they are to make informed investment decisions in 2018 for the time after Brexit.

Without a good idea by early next year of what a transition period will look like, international businesses in Britain would start to "vote with their feet" and move operations to the continent for fear of a "hard Brexit", some have warned.

The uncertain grip May, who campaigned last year against Brexit, has over her party and hardliners demanding she resist EU demands and be ready to walk out with no deal, has left Europeans unsure of where negotiations may lead. The gesture to May reflects some willingness to help reinforce her in office.

"DEADLOCK" OVER MONEY

Barnier and his British counterpart, Brexit Secretary David Davis, told reporters there had been some progress this week on citizens' rights and the Irish border question. Davis renewed his call for EU leaders to give a green light to trade talks next week but that has long been a forlorn hope.

Barnier made clear that despite new momentum from May's concessions in a speech at Florence last month, British proposals still failed the "sufficient progress" test, notably on tens of billions of euros the EU says London owes.

May said Britain would ensure the other 27 countries did not lose out financially from Brexit in the current EU budget period to 2020 and would honor commitments -- but Barnier said London was failing to spell out just what it was ready to pay.

"There was no negotiation on this, but we did have technical discussions which were useful," he said. "We are, therefore, at a deadlock on this question. This is extremely worrying for European taxpayers and those who benefit from EU policies."

Nonetheless, he offered hope: "I am still convinced that, with political will, decisive progress is within reach in the coming two months. With David Davis, we will organize several negotiating meetings between now and the end of the year."

May herself said there had been "good progress" and welcomed Barnier's talk of further progress "over the coming weeks".

More Related News

By Robin Emmott BRUSSELS (Reuters) - Britain's foreign minister won further support from the European Union and NATO on Monday over a nerve agent attack on a former Russian double agent as he denounced Moscow's denials of involvement as "increasingly absurd". Johnson discussed the

The European Union must have a common policy towards Russia and China, German Chancellor Angela Merkel said on Monday. "We must have a common policy towards Russia and China," Merkel said via a translator at a joint conference with Polish Prime Minister Mateusz Morawiecki in Warsaw. Merkel

By Gabriela Baczynska and Alastair Macdonald BRUSSELS (Reuters) - The European Union is close to offering Britain a deal on a post-Brexit status quo transition this week, EU diplomats said on Monday, as Ireland sought assurances any agreement would not let London water down pledges on its Northern Irish

By Sarah Young LONDON (Reuters) - Britain should consider a limited extension to its exit process from the European Union if needed to ensure details of its future relationship with the bloc are agreed, a committee of lawmakers said in a report. Prime Minister Theresa May formally notified the EU of

British Prime Minister Theresa May took aim at Russia at a major speech to her Conservative Party on Saturday, cutting a stronger figure as internal Brexit divisions took a back seat. Amid escalating tensions with Moscow over the poisoning of a former double agent on British soil, May warned that she would "never tolerate a threat to the life of British citizens and others on British soil from the Russian government," to strong applause from party members. May's last major party conference appearance ended in disaster as a cough, a prankster and a collapsing backdrop undermined her speech -- intended to restore her authority following last year's disastrous snap general election in...

Leave a Comment

Your email address will not be published. Required fields are marked with *